# The Ensign Group (ENSG.US)

Canonical: https://gigainvestors.com/s/ENSG

Analysis as of: 2026-10-16T07:28:17.398Z. Financial observations: FY2002–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $178.11 per share; close as of 2026-10-15.

Estimated value: low $93.13 per share, central $131.49 per share, high $153.82 per share. Buy at or below the central value $131.49 per share. Valuation as of 2026-10-16T07:28:17.398Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.29×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.03×

- FY2018: 0.05×

- FY2019: 0.06×

- FY2020: 0.09×

- FY2021: 0.10×

- FY2022: 0.10×

- FY2023: 0.07×

- FY2024: 0.08×

- FY2025: 0.08×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.0%

- ROIC, second-lowest year: 5.5%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 15.7%

- Recent gross margin (lower of latest and 3-year median): 15.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 8.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.6%

- FY2017: 4.0%

- FY2018: 9.4%

- FY2019: 5.5%

- FY2020: 10.8%

- FY2021: 10.2%

- FY2022: 9.6%

- FY2023: 7.1%

- FY2024: 8.7%

- FY2025: 5.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.3B

- Net income, five-year total: $1.3B

- Return on incremental invested capital: 39.0%

- Working capital / revenue, annual change: -11.5 pp

- Working capital / revenue, change between three-year averages: -2.1 pp

- Working capital / revenue, final three-year average: 10.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.4% vs 7.1%

- Per-share earnings: 0.90 to 5.12 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: $9.0B

- Cumulative retained earnings: $1.5B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 24.3%

- Per-share value change: $4.22

- Per-share value, starting three-year median: $0.90

- Per-share value, ending three-year median: $5.12

- Buybacks concentrated in cheaper years (correlation): 0.31

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $55M

- Cumulative net income, 10 years: $1.7B

- ROIC, first three-year median: 9.4%

- ROIC, last three-year median: 7.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.90

- FY2017: $0.77

- FY2018: $1.70

- FY2019: $1.97

- FY2020: $3.06

- FY2021: $3.42

- FY2022: $3.95

- FY2023: $3.65

- FY2024: $5.12

- FY2025: $5.84

### accounting: pass

- Sloan accruals: -4.0%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.64×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.4%

- FY2017: -2.9%

- FY2018: -10.0%

- FY2019: -2.5%

- FY2020: -8.0%

- FY2021: -2.8%

- FY2022: -1.4%

- FY2023: -4.0%

- FY2024: -1.1%

- FY2025: -4.0%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 10.4% a year for ten years · "ENSG Q2 Earnings Beat Estimates on Growing Occupancy, '26 View Raised" (finance.yahoo.com, Jul 2026) · sales +8.5%

Story as of 2026-10-16T09:58:41.902Z; price observation 2026-10-15.

Price needs cash profits to grow 10.4% a year for ten years

- 2025-05-13: ENSG Q1 Earnings Call: Expansion and Operational Improvements Drive Guidance Raise ([finance.yahoo.com](https://finance.yahoo.com/news/ensg-q1-earnings-call-expansion-114646319.html))

- 2025-11-03: The Ensign Group Reports Third Quarter 2025 Results; Raises Annual Earnings and Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/ensign-group-reports-third-quarter-210700824.html))

- 2026-02-06: Ensign Group Q4 Earnings Beat Estimates on Growing Occupancy ([finance.yahoo.com](https://finance.yahoo.com/news/ensign-group-q4-earnings-beat-163100350.html))

- 2026-07-30: ENSG Q2 Earnings Beat Estimates on Growing Occupancy, '26 View Raised ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/ensg-q2-earnings-beat-estimates-162400174.html))

### Sales · FY2025–2026

sales +8.5%; source https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm; observed 2026-02-04.

- FY2017: $1.6B 

- FY2018: $1.8B 

- FY2019: $2.0B 

- FY2020: $2.4B 

- FY2021: $2.6B 

- FY2022: $3.0B 

- FY2023: $3.7B 

- FY2024: $4.3B 

- FY2025: $5.1B 

- FY2026: $5.5B 

### Gross margin · FY2025

gross margin 15.8%; source https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm; observed 2026-02-04.

- FY2016: 11.4% 

- FY2017: 10.8% 

- FY2018: 12.5% 

- FY2019: 14.3% 

- FY2020: 17.0% 

- FY2021: 17.8% 

- FY2022: 17.1% 

- FY2023: 15.8% 

- FY2024: 15.7% 

- FY2025: 15.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical care facilities; annual sales are USD 5.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm (filed 2026-02-04); FY2025: revenue 5057841000; grossProfit 799453000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ENSG.US: The Ensign Group, Inc. provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The Skilled Services segment provides short and long-term nursing care services for patients with chronic conditions, prolonged illness, and the elderly; specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management; and standard services, such as room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. The Standard Bearer segment leases post-acute care properties to healthcare operators. In addition, the company operates senior living units; and provides ancillary services consisting of digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, and long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities, as well as mobile diagnostics. The company operates healthcare facilities in Alabama, Alaska, Arizona, Colorado, Idaho, Iowa, Kansas, Oregon, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington, and Wisconsin. The company was incorporated in 1999 and is based in San Juan Capistrano, California.

### Why customers stay

Margins ranged from 15.7% to 15.8% during 2023–25; it earns 9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: grossProfit / revenue = 15.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm (filed 2026-02-04); FY2025: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); 10-year return on capital observations [[2016,0.09554671583196096],[2017,0.040285505576213514],[2018,0.09384785321495204],[2019,0.05484548224285838],[2020,0.107970604108817],[2021,0.10238174280368845],[2022,0.09559948106359081],[2023,0.07119818562336917],[2024,0.08691487429525092],[2025,0.05621720404569299]]; median 0.09038136375510147. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 17% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm (filed 2026-02-04); Gross margin observations: [[2021,0.17819902940519383],[2022,0.17120822299227756],[2023,0.15840782119160016]]; range within 2 percentage points.

### Where the cash goes

Spends 25.9% of cash earnings on expansion; earns 39% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2016: growth capex 27017000; upkeep 38682000; owner earnings 49990000. Growth capex / owner earnings = 0.5404480896179236.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2017: growth capex 0; upkeep 57166000; owner earnings 27781000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2018: growth capex 10084000; upkeep 44864000; owner earnings 92364000. Growth capex / owner earnings = 0.10917673552466328.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2019: growth capex 20487000; upkeep 51054000; owner earnings 110534000. Growth capex / owner earnings = 0.18534568549043734.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2020: growth capex 0; upkeep 50326000; owner earnings 174723000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2021: growth capex 13565000; upkeep 55985000; owner earnings 194652000. Growth capex / owner earnings = 0.0696884696792224.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2022: growth capex 25190000; upkeep 62355000; owner earnings 224681000. Growth capex / owner earnings = 0.1121145090150035.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: growth capex 33793000; upkeep 72387000; owner earnings 209399000. Growth capex / owner earnings = 0.16138090439782424.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: growth capex 74102000; upkeep 84138000; owner earnings 297973000. Growth capex / owner earnings = 0.24868696157034362.

- Source: https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm (filed 2026-02-04); FY2025: growth capex 89230000; upkeep 104327000; owner earnings 343971000. Growth capex / owner earnings = 0.2594114038683494.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Incremental return on capital 0.3901626972810653, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Dividend observations: [[2016,8173000],[2017,8717000],[2018,9419000],[2019,10190000],[2020,10830000],[2021,11548000],[2022,12168000],[2023,12890000],[2024,13671000],[2025,14410000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm (filed 2026-02-04); FY2025: cash repurchases 21434000 USD.

### Are managers owners

Insiders own 3.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ENSG.US SharesStats.PercentInsiders = 3.531 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.4% yearly over ten years; actual growth was 19.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Ten-year compound average after fade. Initial solved rate 0.13692878603446756. Price 178.11; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9931827087449422 → FY2025 5.842593378968288. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $17.28 per share

- 2016-11: $20.22 per share

- 2016-12: $20.78 per share

- 2017-01: $19.03 per share

- 2017-02: $17.62 per share

- 2017-03: $17.59 per share

- 2017-04: $16.79 per share

- 2017-05: $17.19 per share

- 2017-06: $20.36 per share

- 2017-07: $20.93 per share

- 2017-08: $19.21 per share

- 2017-09: $21.13 per share

- 2017-10: $21.59 per share

- 2017-11: $22.70 per share

- 2017-12: $20.77 per share

- 2018-01: $21.54 per share

- 2018-02: $24.98 per share

- 2018-03: $24.60 per share

- 2018-04: $26.07 per share

- 2018-05: $34.25 per share

- 2018-06: $33.51 per share

- 2018-07: $33.74 per share

- 2018-08: $36.55 per share

- 2018-09: $35.47 per share

- 2018-10: $34.65 per share

- 2018-11: $42.44 per share

- 2018-12: $36.29 per share

- 2019-01: $40.76 per share

- 2019-02: $46.26 per share

- 2019-03: $47.89 per share

- 2019-04: $48.19 per share

- 2019-05: $49.82 per share

- 2019-06: $53.25 per share

- 2019-07: $56.37 per share

- 2019-08: $46.68 per share

- 2019-09: $44.37 per share

- 2019-10: $42.25 per share

- 2019-11: $43.43 per share

- 2019-12: $45.37 per share

- 2020-01: $45.20 per share

- 2020-02: $44.50 per share

- 2020-03: $37.61 per share

- 2020-04: $37.41 per share

- 2020-05: $43.72 per share

- 2020-06: $41.85 per share

- 2020-07: $45.99 per share

- 2020-08: $58.54 per share

- 2020-09: $57.06 per share

- 2020-10: $58.84 per share

- 2020-11: $71.87 per share

- 2020-12: $72.92 per share

- 2021-01: $78.28 per share

- 2021-02: $82.02 per share

- 2021-03: $93.84 per share

- 2021-04: $85.85 per share

- 2021-05: $83.20 per share

- 2021-06: $86.67 per share

- 2021-07: $85.07 per share

- 2021-08: $81.67 per share

- 2021-09: $74.89 per share

- 2021-10: $78.01 per share

- 2021-11: $76.33 per share

- 2021-12: $83.96 per share

- 2022-01: $75.43 per share

- 2022-02: $84.04 per share

- 2022-03: $90.01 per share

- 2022-04: $80.33 per share

- 2022-05: $81.17 per share

- 2022-06: $73.47 per share

- 2022-07: $79.69 per share

- 2022-08: $85.30 per share

- 2022-09: $79.50 per share

- 2022-10: $89.78 per share

- 2022-11: $95.00 per share

- 2022-12: $94.61 per share

- 2023-01: $93.25 per share

- 2023-02: $89.48 per share

- 2023-03: $95.54 per share

- 2023-04: $97.09 per share

- 2023-05: $88.61 per share

- 2023-06: $95.46 per share

- 2023-07: $96.87 per share

- 2023-08: $100.22 per share

- 2023-09: $92.93 per share

- 2023-10: $96.60 per share

- 2023-11: $107.07 per share

- 2023-12: $112.21 per share

- 2024-01: $113.22 per share

- 2024-02: $124.92 per share

- 2024-03: $124.42 per share

- 2024-04: $118.36 per share

- 2024-05: $121.24 per share

- 2024-06: $123.69 per share

- 2024-07: $140.75 per share

- 2024-08: $151.36 per share

- 2024-09: $143.82 per share

- 2024-10: $154.99 per share

- 2024-11: $146.21 per share

- 2024-12: $132.86 per share

- 2025-01: $139.66 per share

- 2025-02: $129.15 per share

- 2025-03: $129.40 per share

- 2025-04: $128.99 per share

- 2025-05: $147.26 per share

- 2025-06: $154.26 per share

- 2025-07: $150.00 per share

- 2025-08: $171.78 per share

- 2025-09: $172.77 per share

- 2025-10: $180.10 per share

- 2025-11: $185.54 per share

- 2025-12: $174.20 per share

- 2026-01: $171.66 per share

- 2026-02: $214.17 per share

- 2026-03: $201.50 per share

- 2026-04: $186.69 per share

- 2026-05: $167.65 per share

- 2026-06: $160.30 per share

- 2026-07: $178.16 per share

- 2026-08: $172.26 per share

- 2026-09: $172.00 per share

- 2026-10: $178.11 per share

## Annual estimated value (USD per share)

- FY2016: low $12.20 per share, central $14.03 per share, high $16.20 per share

- FY2017: low $11.02 per share, central $12.80 per share, high $14.81 per share

- FY2018: low $15.28 per share, central $21.58 per share, high $25.33 per share

- FY2019: low $18.53 per share, central $22.91 per share, high $26.62 per share

- FY2020: low $31.22 per share, central $38.79 per share, high $44.71 per share

- FY2021: low $31.31 per share, central $35.08 per share, high $40.11 per share

- FY2022: low $52.07 per share, central $65.32 per share, high $75.53 per share

- FY2023: low $72.21 per share, central $99.77 per share, high $115.82 per share

- FY2024: low $79.91 per share, central $110.90 per share, high $128.95 per share

- FY2025: low $89.69 per share, central $124.69 per share, high $145.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1125376/000112537626000007/ensg-20251231.htm); period 2025-12-31, filed 2026-02-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.